• Government approves three major rail projects in Lagos, Kano, and Kaduna

• Green Line in Lagos to carry up to 1 million passengers daily

• Projects aim to ease congestion but face funding and cost challenges

Nigeria has approved nearly $3 billion in new rail investments to expand its urban transport networks and reduce pressure on roads.

The federal government last week approved contracts for three major rail projects, with a total value of $2.99 billion. The projects include the first phase of Lagos’s “Green Line,” a light rail system in Kano State, and a tramway in Kaduna. According to the Ministry of Finance, these investments form part of the 2025 and 2026 budget plans.

Taiwo Oyedele, Minister of Finance, announced the approval of three major rail projects: the Lagos Green Line Rail Project Phase 1A, Kano Metro City Rail Project and Kaduna Light Rail Project.@taiwoyedele | @FinMinNigeria pic.twitter.com/CD19SkIHXu

— Presidency Nigeria (@NGRPresident) May 1, 2026

City authorities say the Green Line will stretch over 68 kilometers, linking Marina to the Lekki Free Zone. The route includes about 15 stations serving key areas such as Victoria Island, Ajah, and the broader Lekki corridor. Once completed, the line could carry up to 1 million passengers per day, with an initial capacity estimated at 500,000 daily users.

At the same time, the Kano and Kaduna projects, under development since 2021, rely on standard gauge rail systems designed to strengthen urban transport in major northern cities.

Together, these investments fit into a broader strategy to restructure Nigeria’s transport system and reduce reliance on road networks.

Traffic congestion remains a major economic burden. A study by the Danne Institute for Research, in partnership with Financial Derivatives Company, estimates that congestion in Lagos costs about 3,834 billion naira, or roughly $2.79 billion, each year.

However, bringing these projects to completion could prove challenging. Key risks include securing full financing and controlling costs in a context of currency volatility.

There are also questions around long-term maintenance and the financial sustainability of the services, especially in a market where fares must remain affordable to ensure widespread use.

Henoc Dossa